Nike Inc. (NKE) shares slipped Tuesday after reports emerged that the sportswear giant is cutting 775 jobs at U.S. distribution centers, the latest move in an ongoing effort to automate its supply chain operations.

The job cuts come on top of 1,000 corporate positions Nike eliminated last summer, according to a CNBC report. Most of the affected roles are concentrated at warehouse facilities in Tennessee and Mississippi, where the company operates major distribution hubs.

It's a familiar story playing out across retail. Macy's Inc. (M) recently announced it would shutter several Connecticut facilities, resulting in more than 1,000 layoffs as the department store chain tries to trim costs and modernize operations. Automation brings efficiency gains, but it comes with real consequences for workers in distribution roles.

The workforce reduction happens as CEO Elliott Hill attempts to turn around Nike's performance following a stretch of disappointing sales and shrinking margins. Hill has been candid that the "journey back to greatness" won't follow a straight line, and these latest cuts underscore the challenging road ahead.

What the Charts Show

Nike's technical setup isn't encouraging. The stock is trading 1.2% below its 20-day simple moving average and 4.6% below its 100-day SMA, pointing to near-term weakness. Shares have dropped 16.04% over the past year and are hovering much closer to their 52-week lows than highs.

The RSI sits at 53.20, suggesting neutral momentum. Meanwhile, the MACD is above its signal line, which typically indicates bullish potential. The mixed signals suggest traders should tread carefully here.

• Key Resistance: $66.50
• Key Support: $63.00

With the stock testing support at $63, a break below could trigger further selling. A bounce off this level might signal the start of a recovery, but given the technical headwinds and ongoing restructuring challenges, Nike faces a tough environment.

NKE Price Action: Nike shares were down 2.05% at $63.66 at the time of publication on Tuesday.